ANALYSIS OF PROFITABILITY AND EXISTING MARKETING CHANNEL OF BORO RICE IN BANGLADESH: STUDY BASED ON SELECTED AREAS OF SHERPUR DISTRICT

Abstract

This study was undertaken to assess the comparative profitability and existing marketing channels of boro rice production in Bangladesh. Sherpur district were selected as these are the surplus rice producing area and it was assumed that as rice is a homogeneous product so rice price moves in similar way in the whole country by excluding the transfer costs from one place to another and the findings will provide and insight about the rice market although the sampling population was very low (only 180 from different rice marketing channels including the grower’s from the study areas). A total of 80 Boro producing farmers, taking 40 from each Upazila (Sreebardi and Sherpur sadar) were selected for the study. Again, a total of 100 intermediaries, taking 50 from each Upazila (Sreebardi and Sherpur sadar) such as Faria, Bepari, Arathdar, miller, and retailer were selected for this study. Survey data were collected using structured questionnaire in 2021. Tabular technique and statistical analysis were done to achieve the objectives of the study. The major findings of the study were that the cultivation of boro rice was profitable from the view point of farmers and the marketing personnels. The net margins or profits of Faria, Bepari, miller, Arathdar and retailer were estimated at Tk. 20.25, Tk.15.00, Tk. 24.25, Tk. 20.00 and Tk. 64.00 per quintal respectively. Retailer received the highest net margin of Tk. 64.00 per quintal followed by miller, wholesaler and Bepari. The lowest marketing cost might be the possible reason for the highest net margin of the retailers. Per hectare benefit cost ratio (BCR) of Boro cultivation was 1.52 was achieved by the boro rice farmers of Sherpur District Because of intensive care of land and quickly identified disease infestation and took measurable action and reduced damages. For this reason Boro farmer’s production rate was higher. Among the intermediaries, Retailer’s net marketing margin were the highest. The study also showed that farmers producing boro rice faced some problems, mainly related to production and marketing of the crops. It may be concluded that the farmers should be encouraged to grow more boro rice as a means of increasing farm income through diversification of crop production in the area under study.